The last time Netflix raised prices was at the start of 2019.
Angela Lang/CNET
Netflix is raising the monthly subscription fees for its standard and premium plans. A standard subscription, the most popular Netflix offering, will now cost $14 a month, or $1 more a month than before. A premium subscription — which unlocks 4K resolution and HDR, along with an increase in the number of screens you can simultaneously stream from — will now cost $18 a month, a jump of $2.
The move comes as many people continue to hunker down in their homes amid the ongoing COVID-19 pandemic, putting extra emphasis on the demand for streaming entertainment from an increasingly crowded field. Within the last year, competition has arrived in the form of streaming services including Apple TV Plus, Disney Plus, HBO Max, Peacock and Quibi.
“We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members,” a spokesperson for Netflix said. “We’re updating our prices so that we can continue to offer more variety of TV shows and films — in addition to our great fall lineup. As always we offer a range of plans so that people can pick a price that works best for their budget.”
Last week, Netflix said that in the third quarter of the year it added 2.2 million subscribers, for a total of just over 195 million, which marked a slowdown from dramatic growth earlier in the year and was fewer than analysts had expected. The company had predicted that the surge wouldn’t last, warning twice already that its growth early in the year was likely pulling forward new subscribers that it normally would have booked in the second half.
For the current quarter, Netflix said last week that it expects to add 6 million streaming members overall.
The last time Netflix raised prices was at the start of 2019, when the monthly cost of both the standard and premium subscriptions jumped by $2. Meanwhile, Netflix’s basic subscription, which allows for streaming at DVD-quality 480p, remains at $9 a month.
The new prices go into effect for new subscribers today. Existing subscribers should expect to receive email and app notifications informing them of the change, followed by an increase to their monthly bill in the coming weeks.
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